/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/040301.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, March 1, 2004, Vol. 7, No. 42 Headlines A U S T R A L I A BRAMBLES INDUSTRIES: 1st Half Pre-tax Profit Down to AU$317 Mln BRAMBLES INDUSTRIES: Latest Figures in line with Expectations BRAMBLES INDUSTRIES: Poor Performance Disappoints Investors ERG GROUP: Balance Sheet Restructuring Behind AU$43.2M Net Loss NATIONAL AUSTRALIA: Fitch Keeps Rating on 'Watch Negative' VILLAGE ROADSHOW: Denies Setting AGM for November C H I N A & H O N G K O N G CHIT FAI: Westson Electrical Initiates Winding up Petition NATIONAL HONEST: Winding up Hearing Slated for March 10 SKY UNITY: Winding up Hearing Slated for March 10 SOUTHERN HONOUR: Faces Winding up Petition in H.K. High Court WING CHEONG: Winding up Hearing Set March 31 I N D O N E S I A LONDON SUMATRA: Creditors OK Debt Restructuring Scheme J A P A N ALL NIPPON: Signs Marketing Agreement with Air China FUJITSU LIMITED: To Open New Semiconductor Plant Next Year FUJITSU LIMITED: Links with Fast-rising Magic Software KANEBO LIMITED: Prexy Resigning; Cites Nixed Cosmetic Unit Sale NISSHO IWAI: Ratings Affirmed; Removed from Monitor Scheme RESONA HOLDINGS: Dissolves Domestic Subsidiaries RESONA HOLDINGS: Ties up with Credit Saison SOFTBANK CORPORATION: Extortion Suspects Arrested K O R E A KOREA EXCHANGE: Equity Valuation Losses Trigger KRW213B Net Loss KOOKMIN BANK: Neither Confirming Nor Denying Takeover Plans M A L A Y S I A PILECON ENGINEERING: Default Status Remains Unchanged TENCO BERHAD: Releases Default Status Update UCP RESOURCES: EGM Set for March 24 UCP RESOURCES: Securities Commission OKs Restructuring Proposal UNITED CHEMICAL: AljeffriDean Conducts Investigative Audit P H I L I P P I N E S ABS-CBN BROADCASTING: Annual Stockholders Meeting April 29 NATIONAL POWER: Bidding out Pulangi Power Plant Repair Works S I N G A P O R E EXCELLENT HOLDINGS: Posts Winding up Order Notice HOKOK PTE: Files for Liquidation I.R.E. CORPORATION: Survival Hinges on Debt-equity Swap KAVATAR CORPORATION: Creditors Must Submit Claims by March 21 T H A I L A N D BANGKOK BANK: Selling 500 Properties Worth TBH3 Billion BANGKOK RANCH: Meets 13 Interest Payments in December NATURAL PARK: Invites Foreigners to Take Part in Local Projects THAI NAM: Reappoints Audit Committee Members TPI POLENE: TRIS Withdraws Ratings - - - - - - - - - ================= A U S T R A L I A ================= BRAMBLES INDUSTRIES: 1st Half Pre-tax Profit Down to AU$317 Mln --------------------------------------------------------------- The combined businesses of Brambles Industries Limited and Brambles Industries Plc (Brambles Industries Group), announced that its trading performance in the half year to December 31, 2003 was in line with expectations. Commenting on the results, Brambles Chief Executive Officer, David Turner, said: "The results are as we expected. We have had a significantly stronger cash flow and net debt is down. Our focus on value is yielding results, and will lead to sustainable profit growth. Looking forward, while there is much to be done, our outlook for the year is unchanged, and we expect a better performance for the second half, leading to good progress for the year as a whole." Financial Summary (all percentage comparisons in constant currency) (a) Revenue from continuing businesses grew by 5% to A$3.8 billion - CHEP and Recall up 10% and 13% respectively; (b) Comparable operating profit from continuing businesses was down 11% at A$409 million; (c) Profit before tax, goodwill amortization and exceptional items were A$317 million (1H03 A$404 million); (d) Profit after tax but before goodwill amortization and exceptional items was A$220 million (1H03 A$274 million); (e) An after-tax exceptional charge of A$46 million resulted principally from a write down in the carrying value of goodwill in Interlake and continued restructuring in CHEP Europe, offset in part by the gain on sale of the Meineke Business; (f) Profit after tax and goodwill amortization and exceptional items was A$130 million (1H03 A$253 million); (g) Earnings per share before goodwill amortization and exceptional items were 13.0 cents, down 20%; (h) The translation effect of currency movements on reported pre-tax profits was positive on the pounds sterling results (+GBP10 million) but negative on the Australian dollar results (-USD28 million); (i) Strong operating cash flow after capital expenditure of A$259 million, which was up A$209 million; (j) Capital expenditure was down a further 12% on the same period last year to A$541 million; (k) Net debt was A$3,714 million, compared with A$4,845 million last December; (l) Interim dividend for shareholders in Brambles Industries Limited remains at 10 cents, 100% franked. Interim dividend for shareholders in Brambles Industries Plc will be 4.155 pence. Business Summary (a) CHEP Americas: revenue was up 10%. In CHEP USA, the transition to the new service center network during 2003 led to a build up of pallets awaiting repair. The program to move these excess pallet stocks into the service centers and repair them is completed and the pallets are now back in the operational pallet pool. Short-term costs were approximately A$27 million. (b) CHEP Europe: revenue was up 8%, pricing initiatives are being implemented to reflect the cost to serve customers, and restructuring program is on track. (c) CHEP Rest of World: continued to perform strongly. (d) Cleanaway: municipal business continued to benefit from recent contract wins, technical waste and commercial and industrial markets remained difficult. (e) Recall: revenue and comparable operating profit were up 13% and 5% respectively. (f) Brambles Industrial Services: made encouraging progress in the Northern Hemisphere and continued its strong growth in Australia. (g) Regional Businesses: there were signs of recovery for Interlake. David Turner said: "Across all our businesses, our continued focus on the efficient use of capital and on cash generation is reflected in the results for the first half, with operating cash flow after capital expenditure A$209 million higher than a year ago and net debt significantly reduced. "We now have in place quality programs across our businesses which are delivering improvements in customer service and operational efficiency. "We expect a better performance in the second half and plan to keep the market fully informed of progress, with a further trading update in mid-May. "Looking further ahead, we have today released Objectives and Milestones which provide a strategic framework within which the Group will operate. It reaffirms our approach and commitment to delivering significant improvements in shareholder value. We have set out clear targets for revenue growth, cash flow, return on capital and financial gearing. These targets will provide a context for monitoring performance as we drive to maximize the full potential of Brambles. "With the recent announcement of Mike Ihlein as Brambles Chief Financial Officer, we have a strong team which is committed to developing the full potential of all Brambles businesses." Notes: All comparisons are quoted at constant exchange rates. Comparable operating profit is defined as profit before interest, tax, goodwill amortization and exceptional items. UK GAAP is the convention used for comparative performance in this news release. Brambles Industries Limited (BIL) and Brambles Industries Plc (BIP) are referred to collectively throughout these financial statements as Brambles. Further information, contact: U.K. Investor Sue Scholes, Head of Investor Relations +44 (0)20 7659 6012 Media Richard Mountain, Financial Dynamics +44 (0)20 7269 7291 Australia Investor John Hobson, Head of Investor Relations +61 (0)2 9256 5216 +61 (0)414 239188 (mobile) Media Jeannette McLoughlin, Group General Manager Corporate Communications +61 (0)2 9256 5255 +61 (0)401 990425 (mobile) For a copy of the Company press release, go to http://bankrupt.com/misc/tcrap_brambles022704.pdf BRAMBLES INDUSTRIES: Latest Figures in line with Expectations ------------------------------------------------------------- The trading performance of Brambles Industries Limited was consistent with its expectations in the first half of 2003 and the outlook for the full year remains unchanged with a better performance expected in the second half leading to good progress for the year as a whole. Revenue from continuing businesses at A$3.8 billion increased by 5% in constant currency, with CHEP and Recall up 10% and 13% respectively and Clean away slightly ahead. This achievement was in the face of slow economic growth in a number of markets. Comparable operating profit (profit before interest, tax, goodwill amortization and exceptional items) from continuing business was A$409 million compared with A$509 million last year. Profit before tax, goodwill amortization and exceptional items was A$317 million compared with A$404 million last year and was in line with the trading updates given with the AGMs. Earnings per share on the same basis at 13.0 cents compared with 16.2 cents. The six months saw a continued strong cash performance with cash flow from operations after capital expenditure of A$259 million, up from A$50 million in the previous year. All divisions remain firmly focused on the more efficient use of assets and on cash generation. In CHEP Americas, short-term one-off costs associated with the program to reduce excess pallets awaiting repair in CHEP USA adversely affected profits in the first four months of the half, but resulted in a significant cash flow improvement. Comparable operating profits were 35% below the first half of last year and 10% below the second half. CHEP Europe profits were 5% higher with revenue up by 8%. CHEP's capital expenditure was 15% lower in constant currency and all regions including the U.S. generated positive operating cash flow after capital expenditure. This reflects improvements in CHEP's asset productivity and working capital management. Cleanaway's profits were lower than last year. The municipal business across Cleanaway continued to benefit from recent contract wins but other business areas in Europe, notably technical waste and Commercial and Industrial (C&I) in the UK faced difficult markets in the first half. An upturn in the business is expected in the second half. Recall increased both revenue and comparable operating profits. Brambles Industrial Services continued to perform strongly in Australia and there was encouraging progress in the Northern Hemisphere businesses. The performance of the Regional Businesses was adversely affected by the depressed market conditions for Eurotainer, though there were some signs of recovery in Interlake. For a copy of the Company press release, go to http://bankrupt.com/misc/tcrap_brambles022704.pdf BRAMBLES INDUSTRIES: Poor Performance Disappoints Investors ----------------------------------------------------------- More than $377 million was stripped from the value of Brambles Industries Limited shares on Thursday, as investors expressed their disappointment in the Company's financial performance, the Advertiser reports. Brambles finished 39c or 6.94 percent lower at $5.23 after it reported a 44 percent drop in interim net profit to $138 million. Baker Young Stockbrokers research manager Duncan Gordon said while there was some suggestion Brambles' was a "cleaning-the- deck type of report," the market was tired of the Company's poor performance. The company was also helped by a stronger performance by U.S. stocks on Wednesday. ERG GROUP: Balance Sheet Restructuring Behind AU$43.2M Net Loss --------------------------------------------------------------- ERG Group announced Friday its financial results for the six months ended December 31, 2003. The Group reported a net loss after tax of $43.2 million, including one-off write-downs and provisions totaling $36.2 million. The result compares with a net loss after tax of $124.9 million in the previous corresponding period. ERG's Chief Executive Officer, Dr. Allan Sullivan, said: "The financial results include the cost savings from our balance sheet restructuring work undertaken during 2003 which are somewhat off-set by the provisions and write-downs we have taken. We are seeing the revenue starting to flow from the supply phase of our portfolio of major projects; however, they were in their early stages during this reporting period and the rate of revenue recognition is therefore still to grow. "Importantly, we have kept a rein on costs in the interim period which has limited the level of our loss at an operating level. We have been able to further offset that operating loss with gains totaling $10.9 million from the early settlement of our American Express liabilities and the restructure of our Rome contract. "Based on my initial assessment of the business, the Board has accepted that we take write-downs and provisions totaling $36.2 million in the current half. Whilst these items have a negative impact on the bottom line number we have reported, they include provisions for restructuring that I believe will be necessary to deliver sustainable future profitability. In this regard, the Board has accepted my plan to reduce the cost base of the Group. "We have also experienced some delays in the commencement of our major projects and would like to have been further progressed within the period. The important fact is, however, that projects in San Francisco, Seattle, Stockholm, Washington DC and, of course, Sydney have all now commenced. The Lazio project has, however, not yet commenced. "We have reported a positive operating result from the early stages of the build phase of these projects, which is a solid foundation from which to move forward. "The net result we have reported is below where we would like it to be. We have actions planned to turn that around as soon as possible, with a particular focus on reducing our overheads and cost of goods sold. We must build on the balance sheet restructuring and commencement of new projects with an operating structure that will allow U.S. to achieve solid profitability." HIGHLIGHTS Operating revenues have been received for the build and installation of systems in Gothenburg, Las Vegas, San Francisco Phase 2, Seattle, Stockholm, Sydney and Washington DC. Both of the Group's operating segments reported positive contributions. The Projects, Supply and Installation segment recorded $47.4 million revenue with a contribution of $12.4 million before significant items. The Operation and Maintenance segment recorded revenue of $90.2 million with a contribution of $3.3 million including the effects of the sale of the Rome infrastructure. EBITDA excluding significant items was a loss of $5.3 million compared with a loss of $25.4 million for the previous corresponding period; however, major projects were in their early stages, which resulted in reduced operating revenue. Interest, depreciation and amortization charges are collectively reduced by $21.1 million from the previous corresponding period to $12.4 million. A profit of $10.9 million resulted from the early settlement of the liabilities to American Express and the restructure of the Rome contract. One-off write-downs and provisions totaled $36.2 million reducing the intangible assets on the balance sheet to $77.6 million. The provisions include an amount of $5.0 million to cover the cost of restructuring the Group to significantly reduce overheads and the cost of goods sold. Total cash reserves stood at $45.6 million including $12.6 million of cash at bank and $33.0 million on deposit as security for performance bonds. Subsequent to 31 December 2003, the Group has secured an additional $25 million working capital facility from the Ingot Group. REVENUE Revenue for the six months ended 31 December 2003 was $147.6 million. Revenues derived from operating activities in the Projects, Supply and Installation segment totaled $47.4 million and the Operation and Maintenance segment totaled $90.2 million. Total revenue included a gain of $9.0 million from the early settlement of the American Express liabilities. The details of the American Express settlement were announced on 26 November 2003. The Projects, Supply and Installation segment contains the revenue derived from the installation of the Group's major projects around the world. Revenue for the current half was comprised of a large number of relatively small contributions from projects in Las Vegas, San Francisco, Seattle, Stockholm, Sydney and Washington DC, as well as multiple small projects. Only the Sydney project exceeded $5 million revenue in the half. Revenue in this segment is recognized on a percentage of completion basis and, with these large projects in their relatively early stages, the rate of revenue recognition is at a lower level than it will be in future periods. The Group has, however, overcome the significant delays it has experienced in the past in commencing these projects. The primary revenue contributors to the Operation and Maintenance segment are, as in other periods, the operating revenues from Melbourne, Rome and San Francisco and the maintenance revenue from Hong Kong and Singapore. The Operations and Maintenance segment includes the revenue received from the restructure of the Rome contract totaling$37.8 million, which is effectively a delayed recognition of revenue from this project. Operating revenue from the Rome contract has been accounted for on a basis consistent with prior periods. The new operating company structure is expected to be in place by the end of the financial year. Excluding the Rome restructure, the level of revenue in the Operation and Maintenance segment represents a decrease of $7.8 million or 13.0% compared with the previous corresponding period, due to the sale of Proton World. EXPENSES Cost of sales has reduced compared with the previous corresponding period giving rise to a profitable contribution at the operating level from both segments of the business. Across the Group, operating expenses continued their downward trend decreasing by 16% compared with the six months ended 31 December 2002. This reduction was achieved despite incurring one-off costs such as the foreign exchange impact on certain receivables, sundry provisions and the termination payment to ERG's previous CEO, which collectively amounted to $7.8 million. Depreciation, amortization and interest have been significantly reduced as a result of the three major restructuring initiatives undertaken during 2003; namely, the $250 million conversion of debt to equity, the sale of Proton World, and the restructure of the Rome contract. Collectively, these expense items were $12.4 million in the current half compared with $33.5 million for the six months ended 31 December 2002. BALANCE SHEET The balance sheet remains in a strengthened position with net assets of $153.0 million compared to $198.7 million as at 30 June 2003. The interest-bearing debt to equity ratio remained stable at 30% due to the scheduled debt repayments during the half. Non-interest bearing long-term liabilities was also reduced as a result of the discounted early settlement with American Express. The other notable movement in the balance sheet is a reduction in property, plant and equipment from $70.2 million to $29.7 million primarily due to the restructure of the Rome contract. SIGNIFICANT ITEMS Significant items included a positive contribution of $10.9 million for the six months ended 31 December 2003 derived from two separate transactions as follows: The discounted early settlement of liabilities totaling $20.6 million owed to American Express resulted in a profit of $9.0 million the restructure of the Rome contract resulted in a net profit of $1.9 million. In addition, the Board has elected to make write-downs and provisions totaling $36.2 million. This amount relates to a write down of the intangible asset related to the Proton license, provision for doubtful debts and a provision for an operational restructuring of the business. The net effect of significant items was therefore a loss of $25.2 million. CASH At 31 December 2003, the Group had total cash reserves of $45.6 million comprised of $12.6 million cash at bank and $33.0 million committed as security for performance bonds. In addition, ERG has secured an additional $25 million working capital facility with the Ingot Group. Cash flow from operating activities was a net outflow of $15.5 million compared to $10.0 million in the previous corresponding period. The net outflow reflects the early stage of the build phase of projects, particularly Sydney, where work has commenced while customer payments under the terms of the contract are still to be received. Investing activities produced a net cash inflow of $29.3 million, primarily from the Rome contract restructure. Broadly speaking, these funds were applied against the $24.5 million outflow from financing activities where debt repayment totaled $23.4 million and bond payments totaled $3.0 million. OUTLOOK In the short term, ERG's goal of a return to profitability is expected to be driven by a combination of increased revenue in the Project, Supply and Installation segment of the business and a restructure of the operations that will lead to further cost reductions. The Group's major projects in San Francisco, Seattle, Stockholm, Sydney and Washington DC are all now contracted and moving forward. As a consequence, any delays that may be experienced on these projects, while not desirable, would result in a timing issue rather than a potential loss of revenue. These projects will all continue to contribute revenue to the Project, Supply and Installation segment. Having been through a period of balance sheet restructure over the last 12 months, the Group is now focused on the timely and profitable delivery of these projects and enhancing the project management expertise required to achieve these goals. ERG is expecting to make structural changes at an operational level that will result in more cost effective and efficient project delivery. ERG's new CEO has already identified several potential areas and a provision of $5.0 million has been raised in this half for the identified costs. This process will continue with the objective of reducing both cost of goods sold and operational expenses, while maintaining a focus on project delivery to customers. To assist in this process, ERG has invested in state-of-the-art Primavera project management software, and expects to add experienced senior project management personnel in the near term. The Board places a high priority on ERG continuing to acquire new projects. ERG will continue to actively bid for new projects in order to ensure the Project, Supply and Installation revenue from the current portfolio of major projects is replaced once those projects become operational. At that point, the current projects will transition into the Operation and Maintenance segment of the business contributing ongoing long-term revenues. ERG will continue to be selective in the new projects it tenders for with a focus on maintaining the current balance sheet strength, whilst managing the exposure of the balance sheet to the build phase of new projects. The Board considers that maintaining a healthy balance sheet is essential to the prospects of the Group in upcoming tenders and it will therefore remain a priority for the immediate future. Given the write-downs and provisions included in the half-year result, ERG does not expect to report a net profit after tax for the full 2004 financial year. The final result to be reported will be dependent to an extent on the conclusion of contracts and commencement of work for the Lazio project. ERG has already invested in a large portion of the hardware for this contract and would therefore recognize healthy revenue and profit levels in its early stages. ERG is currently negotiating with the authorities in Lazio with a view to commencing delivery of this project as soon as possible. The delays experienced in the start up of major projects experienced in the first half will delay a portion of revenue until the following financial year; however, the revenue reported from these projects in the second half is expected to grow as the projects ramp up. BACKGROUND INFORMATION ERG Group The ERG Group is a world leader in the development and supply of integrated fare management and software systems for the transit industry, and for its smart card systems and services. The Group has installed systems in major cities throughout the world including Hong Kong, Melbourne, Rome, San Francisco and Singapore with installations in progress in Gothenburg, Seattle, Stockholm, Sydney and Washington DC. ERG has delivered systems that support more than 20 million smart cards in circulation and handle approximately 5 billion transactions per annum. ERG is an Australian-based company, listed on the Australian Stock Exchange and employs 800 people in 11 countries. Contact Shaun Duffy - General Manager Investor Relations Phone +61 8 9273 1879 Fax +61 8 9273 1208 E-mail: sduffy@erggroup.com NATIONAL AUSTRALIA: Fitch Keeps Rating on 'Watch Negative' ---------------------------------------------------------- Fitch Ratings is maintaining National Australia Bank (NAB)'s ratings on Rating Watch Negative until it can determine the underlying causes of the apparent failures in risk management that led to losses of AU$360 million before tax on foreign currency options trading. Since Fitch's last update on 2 February, the following developments have taken place: (a) The Chairman of the NAB Board announced his resignation on 16 February; (b) A replacement Chairman was appointed from the remaining Board of Directors; (c) The independent inquiry by PricewaterhouseCoopers (PWC) into the trading losses is now unlikely to be completed until mid-March (previously the end of February); and (d) The Securities and Exchange Commission (SEC) in the United States is to investigate NAB's audit independence and accounting and internal controls. While it does not appear NAB has breached independence regulations in Australia, New Zealand or the United Kingdom, the U.S. SEC rules differ. The U.S. SEC investigation adds to the separate inquiries being conducted by PWC, APRA (the Australian bank regulator) and the Australian Federal Police. Separately, NAB announced Thursday that it has been issued with amended tax assessments by the Australian Tax Office. Although the additional tax plus penalties could amount to several hundred million Australian dollars, NAB holds favorable legal opinions on its positions. Should the dispute shift to the courts, the resolution process may become protracted. This matter is not a consideration in Fitch's decision to maintain NAB's ratings on Rating Watch Negative, but proceedings will be closely followed. In order to resolve the Rating Watch Negative, Fitch plans to discuss the investigations' findings with NAB once they are released. Ratings on Watch Negative are: National Australia Bank Long-term 'AA', Short-term 'F1+' and Individual 'A/B'. Contact: John Miles, Andrew Smith; Brisbane, Tel: +617 3222 8600. VILLAGE ROADSHOW: Denies Setting AGM for November ------------------------------------------------- On February 19, 2004, in the context of its announcement relating to the Takeovers Panel decision, Village Roadshow Limited advised, amongst other things, that "no general meeting prior to the annual general meeting, expected to be held in late November 2004, is currently being contemplated by the Company." Following an enquiry received by the Company in respect of this statement, the Company wishes to make the following clear. The Company's statement above as to its current intentions (like all such statements) is based on the facts and circumstances known to the Company at the time of the statement and does not preclude the Company proposing any resolution to its shareholders (including a further buy-back resolution). Naturally, circumstances can and do change and, should that occur in respect of the schemes, the Company must consider what impact, if any, the changed circumstances has on its strategy or indeed its business operations generally. ============================== C H I N A & H O N G K O N G ============================== CHIT FAI: Westson Electrical Initiates Winding up Petition ---------------------------------------------------------- The petition to wind up Chit Fai Engineering Company Limited is scheduled for hearing before the High Court of Hong Kong on March 17, 2004 at 10 in the morning. Westson Electrical Supplies Limited, whose registered office is situated at Ground Floor, Tung Chau Building, 276 Tung Chau Street, Shamsuipo, Kowloon, Hong Kong, filed the petition on January 15, 2004. The Petitioners' solicitors are Chung & Kwan of Rooms 1601-6, 16th Floor, ING Tower, 308-320 Des Voeux Road Central, Hong Kong. Any person who intends to appear at the hearing of the petition must send solicitor's Tsang, Chan & Wong a notice in writing not later than six o'clock afternoon of the 16th day of March 2004 (the day before the petition hearing). NATIONAL HONEST: Winding up Hearing Slated for March 10 ------------------------------------------------------- The petition to wind up National Honest Limited is scheduled for hearing before the High Court of Hong Kong on March 10, 2004 at 9:30 in the morning. The Bank of China (Hong Kong) Limited, whose registered office is situated at 14th Floor, Bank of China Tower, No. 1 Garden Road, Central, Hong Kong, filed the petition on December 31, 2004. The Petitioners' solicitors are Tsang, Chan & Wong of 16th Floor, Wing On House, 71 Des Voeux Road Central, Hong Kong. Any person who intends to appear at the hearing of the petition must serve or send solicitor's Tsang, Chan & Wong a notice in writing not later than twelve o'clock noon of the 9th day of March 2004 (the day before the petition hearing). SKY UNITY: Winding up Hearing Slated for March 10 ------------------------------------------------- The petition to wind up Sky Unity Limited is scheduled for hearing before the High Court of Hong Kong on March 31, 2004 at 9:30 in the morning. The Bank of China (Hong Kong) Limited, whose registered office is situated at 14th Floor, Bank of China Tower, No. 1 Garden Road, Central, Hong Kong, filed the petition on January 28, 2004. The Petitioners' solicitors are Tsang, Chan & Wong of 16th Floor, Wing On House, 71 Des Voeux Road Central, Hong Kong. Any person who intends to appear at the hearing of the petition must serve or send solicitor's Tsang, Chan & Wong a notice in writing not later than twelve o'clock noon of the 30th day of March 2004 (the day before the petition hearing). SOUTHERN HONOUR: Faces Winding up Petition in H.K. High Court ------------------------------------------------------------- The petition to wind up Southern Honour Enterprises Limited is set for hearing before the High Court of Hong Kong on March 10, 2004 at 10 o'clock in the morning. IFFCO (Malaysia) Sdn. Bhd., whose registered office is situated at PLO 46-Jalan Emas, 81700 Pasir Gudang, Johor, Malaysia, filed the petition on December 31, 2004. The Petitioners' solicitors are Barlow Lyde & Gilbert of 24th Floor, Nine Queen's Road Central, Hong Kong. Any person who intends to appear at the hearing of the petition must serve or send solicitor's Barlow Lyde & Gilbert a notice in writing not later than twelve o'clock noon of the 9th day of March 2004 (the day before the petition hearing). WING CHEONG: Winding up Hearing Set March 31 -------------------------------------------- The petition to wind up Wing Cheong International Electrical Limited is scheduled for hearing before the High Court of Hong Kong on March 31, 2004 at 9:30 in the morning. Bank of China (Hong Kong) Limited, whose registered office is situated at 14th Floor, Bank of China Tower, No. 1 Garden Road, Central, Hong Kong, filed the petition on January 28, 2004. The Petitioners' solicitors are Tsang, Chan & Wong of 16th Floor, Wing On House, 71 Des Voeux Road Central, Hong Kong. Any person who intends to appear at the hearing of the petition must serve or send solicitor's Tsang, Chan & Wong a notice in writing not later than six o'clock in the afternoon of the 30th day of March 2004 (the day before the petition hearing). ================= I N D O N E S I A ================= LONDON SUMATRA: Creditors OK Debt Restructuring Scheme ------------------------------------------------------ Plantation firm PT PP London Sumatra (Lonsum) said all of its creditors have agreed to restructure its debts, Asia Pulse reported on Thursday. Lonsum Chief Commissioner Ibrahim Risjad said the restructuring process is expected to be completed in April. Based on its financial report in September 2003, the company had debts totaling Rp1,974.71 billion (US$235 million) including long term and short term debts. The restructuring will be made in three schemes (1) conversion of debt to share, (2) rollover and (3) buyback. Around 25 percent of the debt will be settled with debt to equity swap, 10 percent will be bought back and the rest will be rescheduled, Mr. Risjad said. ========= J A P A N ========= ALL NIPPON: Signs Marketing Agreement with Air China ---------------------------------------------------- Air China and All Nippon Airways (ANA) announced they have signed a marketing and operations agreement covering code-share flights on Japan-China services by both airlines, plus cooperation in frequent flyer programs and airport lounge access. From March 28, Air China and ANA will jointly operate 95 flights per week between Beijing and Tokyo/Osaka, and Shanghai and Tokyo/Osaka. ANA's 56 weekly flights from Tokyo-Narita and Osaka-Kansai to Beijing and Shanghai will carry the Air China (CA) code. Air China's 39 weekly flights on the same routes also will operate with ANA (NH) flight numbers. Each airline also will inaugurate service between Hangzhou and Tokyo/Osaka, bringing the total of code-share flights to 105 by April 21. Members of Air China's Companion Frequent Flyer Program and ANA Mileage Club will be eligible to accrue mileage on the code-share flights and redeem it on any flight on either airline's network. ANA and Air China have been operating a connection service via Beijing between Tokyo-Narita and the Chinese domestic cities of Chengdu, Chongqing, Hangzhou, Nanjing, and Changchun since October 2003. This service is designed to facilitate onward domestic travel in China for passengers arriving from Japan, and for those passengers traveling to Japan from the above cities. Demand for air travel between Japan and China is forecast to grow in line with the quickly expanding Chinese economy, and the agreement positions ANA and Air China to play a greater role in the market. Air China has code-share agreements with more than 60 airlines, including Lufthansa, United, Asiana, Austrian and SAS, all Star Alliance members, as is ANA. The new agreement with ANA also includes the exchange of cabin crew on certain flights, thus further improving on-board service for passengers. Air China President Li Jiaxiang said: "Comprehensive restructuring and consolidation of the civil aviation industry of China in 2003 brought new opportunities for the development of Air China. After consolidation, Air China can enjoy more advantages in terms of route structure and resources allocation. Despite the SARS epidemic, Air China still made profits in 2003, which laid a solid foundation for further development. Air China is persisting in the philosophy of 'safety first and customer orientation'." He continued, "Our services are designed to give customers peace of mind, increase their level of satisfaction and comfort, and to make their trips an all-around pleasant and memorable experience. We are aiming to become the leading airline, which can compete with world-class airlines with superior quality of products and services. The code-share cooperation with ANA is an important step taken towards the strategy of exploring bilateral cooperation and implementing globalization, following the code- share with Lufthansa, United Airlines and the others." ANA's President and CEO Yoji Ohashi said, "Demand for travel between our two countries is potentially enormous, and we are delighted to work with Air China to mutually strengthen our networks in this manner. We are convinced that thanks to this new arrangement we can better meet the needs of the public traveling between Japan and China for business or pleasure. Despite one of the worst years in the history of aviation in Asia, traffic has made a robust return. Air China and ANA now find themselves in a position to maximize the opportunities afforded by this very dynamic market and to bring greater choice and new services to our passengers." Code-share flights from March 28, 2004 Beijing-Tokyo -- Air China 7 per week, ANA 14 per week (21 total) Beijing-Osaka -- Air China 11 per week, ANA 7 per week (18 total) Shanghai-Tokyo -- Air China 14 per week, ANA 21 per week (35 total) Shanghai-Osaka -- Air China 7 per week, ANA 14 per week (21 total) Hangzhou-Tokyo -- ANA 4 per week (4 total) Hangzhou-Osaka -- Air China 3 per week, ANA 3 per week (6 total) Contact: Thomas Fredo, ANA Public Relations, t.fredo@fly-ana.com FUJITSU LIMITED: To Open New Semiconductor Plant Next Year ---------------------------------------------------------- Fujitsu Limited will spend about 160 billion yen (US$1.5 billion) to build a semiconductor plant in Mie prefecture, western Japan, the Nihon Keizai newspaper reports. The factory will make chips for digital consumer electronics, such as flat- panel televisions and DVD players. The plant will open in early 2005 and will be able to make 10,000 300-millimeter chips a month. The Company hasn't made large investments over the past several years because of slumps in its memory chip and computer businesses. The company's other four semiconductor plants in Japan can only make 200-millimeter chips. The facility will be built on a vacant site near Fujitsu's factory there. Fujitsu, which accumulated 505 billion yen in losses in its 2002 and 2003 fiscal years and was unprofitable in 9 of the past 11 quarters, has reorganized its business to focus on business computers and communications services. FUJITSU LIMITED: Links with Fast-rising Magic Software ------------------------------------------------------ Magic Software Enterprises, a leading provider of state-of-the- art business integration and development technology, announced last week that its subsidiary, Magic Software Japan, has signed a memorandum of understanding for joint business development with Fujitsu Limited. Under this agreement the companies will work together to sell Magic's eDeveloper application development environment in conjunction with Fujitsu's Interstage Application Server. Magic Software Japan, which was established in 1998 and began operations in 1999, has built a solid reputation and strong presence in the Japanese market, where it currently controls a significant share of the application development technology segment. Magic Software Japan is Magic Software's largest entity, currently representing approximately 15% of the Company's total revenues. More than 24,000 corporations nationwide in Japan are using Magic's products for application development and integration. As part of this agreement, Magic Software has adapted its eDeveloper environment to work with Fujitsu's Interstage server. The agreement effectively opens up the market for Fujitsu to the approximately 1,000 software houses in Japan using eDeveloper to develop applications and software packages. The agreement also opens up a new channel that will enable Magic Software to reach a broader base of enterprise customers. Fujitsu's Interstage server has been deployed in more than 30,000 servers in large-scale mission-critical business environments around the world. Existing Magic Software customers will benefit from Fujitsu's high-performance and high- reliability computing platform. "Our eDeveloper application development technology has empowered developers around the world, and especially in Japan, with an easy-to-use, highly productive platform for building composite applications in complex heterogeneous environments," said David Leichner, vice president of worldwide marketing at Magic Software. "Our technology strategy is to bring those strengths to an even broader market, and the strong support we are receiving from companies like Fujitsu will help make that possible." By supporting Fujitsu's Interstage application server, Magic Software is helping to provide its developer base with the ability to take advantage of a leading application server. It is expected that in the future, the partnership will be expanded to include a global agreement that will include Fujitsu's worldwide network and Magic Software's channel, which includes more than 50 countries around the globe. About Fujitsu Limited Headquartered in Tokyo, Fujitsu Limited is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting technologies, high- reliability/performance computing and telecommunications platforms, and a worldwide corps of systems and services experts make Fujitsu uniquely positioned to unleash the infinite possibilities of the broadband Internet to help its customers succeed. For more information, please see: http://www.fujitsu.com. About Magic Software Enterprises Magic Software Enterprises, a subsidiary of Formula Systems (Nasdaq: FORTY), develops, markets and supports software development, deployment and integration technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners in approximately 50 countries. Magic Software Japan is located at Aioi Sonpo Shinjuku Bldg. 14F 3-25-3 Yoyogi Shibuya-ku Tokyo 151-0053, telephone: (81-3) 5365- 1600, fax: (81-3) 5365-1630. Magic's North American headquarters is located at 17310 Redhill Avenue #270, Irvine, CA 92614-5637, telephone: 949-250-1718, fax: 949-250-7404. Magic's EMEA headquarters is located at Pelmolen 17 3994 XX Houten in the Netherlands, telephone: +31-30-656 6266, fax: +31-30-656 6277. http://www.magicsoftware.com/. Formula Systems is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and producing computer- based solutions. Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both here and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission. CONTACTS Magic Software Enterprises Ltd. David Leichner, 949-250-1718 Ext. 299 Vice President, Worldwide Marketing davidl@magicsoftware.com KANEBO LIMITED: Prexy Resigning; Cites Nixed Cosmetic Unit Sale --------------------------------------------------------------- Cosmetics and textile maker Kanebo Limited said its president and other board members are planning to resign next month, throwing the ailing firm into more turmoil after scrapping plans to sell its cosmetics unit, according to Reuters. Kanebo ditched plans this month to sell its cosmetics division to top household products maker Kao Corporation, citing opposition from its labor union, turning instead to a government-backed body for aid. "The board is resigning to take responsibility for recent developments," said Kanebo spokesman Tetsuya Arai. Kao's planned purchase of Kanebo's cosmetics operation was reported to have been worth 400 billion yen ($3.67 billion). Kanebo has debts of around 520 billion yen. NISSHO IWAI: Ratings Affirmed; Removed from Monitor Scheme ---------------------------------------------------------- The Rating and Investment Information, Inc. (R&I) on Tuesday has removed the following ratings of Nichimen Corporation and Nissho Iwai Corporation from the Rating Monitor scheme: ISSUER: Nichimen Corp. (Sec. Code: Unlisted) Senior Long-term Credit Rating R&I RATING: BB- (Downgraded from BB+; Removed from the Rating Monitor scheme) Domestic Commercial Paper Program R&I RATING: a-3 (Affirmed; Removed from the Rating Monitor scheme) ISSUER: Nissho Iwai Corporation (Sec. Code: Unlisted) Senior Long-term Credit Rating; Long-term Bonds (2 series) R&I RATING: BB- (Affirmed; Removed from the Rating Monitor scheme) Domestic Commercial Paper Program R&I RATING: a-3 (Affirmed; Removed from the Rating Monitor scheme) RATIONALE: In April 2003, Nichimen Corp. and Nissho Iwai Corp. established the holding company Nissho Iwai-Nichimen Holdings and integrated their management. In April 2004, there are plans for the two companies to merge, so R&I evaluated the companies as a single entity and conducted a review of both ratings. The level of basic earning potential of Nichimen and Nissho Iwai is low compared to top ranking general trade companies and there is a high level of continuing special losses due to rationalization, real estate, investment and financing activities the companies were involved in previously. Excluding special profits, pretax profits have been in deficit for five years running and a deficit is predicted for the year to March 2004 as well. A strengthening of the financial base through management integration can be acknowledged to some extent as a result of cost cutting and increased funds. However, overall financial strength is weak compared to that of top general trade companies and progress in reconstruction of the business base is lagging. There are also still some assets where possible losses are of concern. Among these are assets in real estate, in subsidiary and affiliate companies, and assets exposed to risk in Japan and overseas. In efforts to strengthen its business base, the company cannot avoid taking risks but, in view of this factor, its equity capital, which serves as a risk buffer, cannot be considered adequate. The companies are indicating that there is a relatively firm framework of assistance in place from major banks for the underwriting of preferred shares by financial institutions the companies trade with. However, there is a strong dependence on short-term funds and consequently, securing long-term stable funds is an issue. After considering the above factors from a comprehensive perspective, R&I have assigned both companies a Senior Long-term Debt Rating of BB-. RESONA HOLDINGS: Dissolves Domestic Subsidiaries ------------------------------------------------ Resona Holdings Inc. (Resona HD) has decided to dissolve its subsidiaries, Asahi Bank Retail Finance Co., Ltd. and Kyodo Mortgage Acceptance Co., Ltd. (the Subsidiaries). In addition to the decision above, Resona bank, Ltd. (Resona Bank, President: Masaaki Nomura), which is one of the banking subsidiaries of Resona HD, has decided to renounce its claims to the subsidiaries in the amount that correspondents to the loss expected to arise due to the dissolution. (1) Reason for the Dissolution Since the business environment is expected to remain severe, Resona Group decided in July 2003 to withdraw from the non-bank business. Since then, the Group has stepped up its efforts to dispose of the related assets. Since the completion of these disposals by the end of March 2004 is in sight, Resona Group has decided to dissolve the Subsidiaries. (2) Outline of the subsidiaries (a) Corporate Name: Asahi Bank Retail Kyodo Mortgage Acceptance Finance Co. Ltd. Co. Ltd. (b) Head Office 21-5, Minami-Ikebukuro 1-7 Nihonbashi Hon-cho Address chome, Toshima-ku 2-chome, Chuo-ku, Tokyo (c) Name of Takashi Kawanabe Tomoaki Sano Representative (d) Amount of 10.2 billion yen 9.9 billion yen (e) Line of Loan business Mortgage securities Business business (3) Schedule for the Dissolution Dissolution of the Subsidiaries are planned to be proposed at their general meetings of shareholders, which will be held in September 2004. (4) Outline of the Debt Forgiveness Asahi Bank Retail Kyodo Mortgage Acceptance Finance Co. Ltd. Co. Ltd. Amount of Debt Approx. 50 billion yen Approx. 52.5 billion yen Forgiveness Amount corresponding to (Amount corresponding to the the excess liabilities excess liabilities expected expected at the end at the end of March 2004) of March 2004) Schedule March 2004 March 2004 *Subject to approvals from the competent authorities (5) Effect of This Development on the Previous Earnings Forecast Since Resona Bank has already provided a loan loss reserve to cover the expected loss arising from this development, the previous earnings forecast of Resona HD which was announced on November 25, 2003 remain unaffected. For a copy of the Company press release, go to http://bankrupt.com/misc/resona022704.pdfor http://www.resona-hd.co.jp/index-e.htm RESONA HOLDINGS: Ties up with Credit Saison ------------------------------------------- Resona Holdings, Inc. (Resona HD, President: Kenji Kawada) and Credit Saison Ltd. (President: Hiroshi Rinno) have decided on Wednesday to conclude a strategic capital and business tie-up aimed at strengthening their credit card businesses. In addition, Resona HD has decided to consolidate the operations of its three credit card subsidiaries, Asahi Card Co. Ltd., Daiwagin Card Co., Ltd. and Osaka Card Service Co., Ltd. Details were announced as follows: Outline of the Capital and Business Tie-Up (1) Consolidation of Credit Card Subsidiaries of Resona Group and Capital Participation from Credit Saison, Ltd. The three Business subsidiaries of Resona Group, Asahi Card, Daiwagin Card and Osaka Card Service will consolidate their operations in July 2004. After the merger, Credit Saison will contribute a part of the capital of a post-merger subsidiary, which will be renamed as Resona Card Co., Ltd., through subscription of new shares issued by Resona Card by way of third-party allotment. Contribution of capital by Credit Saison is planned to be 10% at the beginning. However, Credit Saison will give consideration to raising the shareholding ration up to a maximum of 49% from now on. Outline of Resona Card Corporate Name Resona Card Co., Ltd. Companies Involved in Merger Asahi Card Co., Ltd. Daiwagin Card Co., Ltd. Osaka Card Service Co., Ltd. Amount of Capital Y400 million Number of Credit Card Members Approximately 2,300 thousands Gross Billin Amount Approximately Y400 billion Number of Directors and Employees Approximately 360 Planned Date of Merger July 1, 2004 Establishment of Resona Card Co., Ltd. is subject to completion of various statutory procedures. Amount of capital shown above is before the capital participation by Credit Saison, Ltd. (2) Mutual Exchange of Personnel In order to derive benefit out of the planned tie-up as early as possible, Asahi Card, Daiwagin Card and Credit Saison will start mutual exchanges of their personnel's from next month. Specifically, Asahi Card and Daiwagin Card will dispatch several personnel to Credit Saison. Credit Saison will also dispatch its staff including Mitsuo Yokoyama (director of Credit Saison) as a candidate for deputy president of Resona Card after its establishment. Also the staff to be dispatched by Credit Saison includes another candidate for an executive officer of Resona Card. (3) Jointly Developing New Cards Resona Card ad Credit Saison will jointly develop new credit cards with "Saison" mark that provide the holders with useful daily life services. The new cards to be developed include an ordinary card, which require no annual membership fee and a gold card, which provides the holder with services of higher quality. This is the first attempt in Japan for a bank-affiliated credit card company. Through this tie-up arrangements, holders of new cards issued by Resona Card will be offered discounts at SEIYU stores and make use of the preferential treatments at approximately 9,500 Saison member shops. Holders of new gold cards will be offered discounts at first- class hotels, various insurance coverage and the preferential discount by Resona Bank of first-year fee for safekeeping of testamentary trusts, which exemplifies a benefit that a bank- affiliated credit card company can offer. Resona Card plans to start issuing the ordinary cards from autumn this year and the gold cards from spring next year, respectively. (4) Outsourcing of Card Operation Business by Resona Card Resona Card will entrust the card operation business relating to the new cards to Credit Saison. Credit Saison will obtain a new source of income while Resona Card will be able to focus its management resources on product developments and sales promotion through rationalization of operations. Objectives of the Tie-up Since Resona HD granted a preferred negotiation right for an alliance with its credit card business subsidiaries to Credit Saison in November last year, Resona HD and Credit Saison have discussed the details of the tie-up. The tow companies came to an agreement to enter into the tie-rp mentioned above as a reciprocal arrangement that would lead to maximization of their corporate values. Entering into the tie-up, Resona Card will be able to acquire the superior marketing know-how and product development capabilities of Credit Saison. In addition, by introducing the new cards that provide the holders with the services and benefits offered so far by Credit Saison, Resona Card can broad its potential customers, especially female and young generation customers. Through the tie-up, Resona Card will aim at increasing its credit card members form the current 2.3 million to 3 million in the future. For Credit Saison, the tie-up with Resona Card will be meaningful from the viewpoint of marketing since male business people comprise a principal portion of the cardholders of Resona Car. In addition, Credit Saison can also strengthen its earnings base further through entrustment of card operation business, which is next in its scale to similar entrustments of operations from Lawno CS Card and Idemitsu Card. The two companies will step up efforts to introduce new products and services utilizing their respective know-how. For more information go to http://bankrupt.com/misc/resona.pdf SOFTBANK CORPORATION: Extortion Suspects Arrested ------------------------------------------------- Softbank BB Corporation, a wholly owned subsidiary of Softbank Corporation has released the following comments concerning press reports on the arrest of suspects in a case of attempted extortion using "Yahoo! BB" client data. COMMENTS: Softbank BB Corporation wishes to release the following comments to clients and concerned parties on reports that it has been the target of attempted extortion using client data. On January 23, 2004 the Company publicly announced that data on 242 clients had been leaked. A complaint has already been filed with police authorities and an investigation is underway. The company is continuing to cooperate with the police authorities to uncover the affair and prevent further leaks or misuse of client data. At present we know that 242 clients data matched Yahoo! BB subscriber data, which included subscribers' addresses, names, telephone numbers, dates of application and e-mail addresses. No credit or security information such as credit card numbers, passwords or records of use was included. In addition to continuously enhancing security measures throughout the entire company by tightening internal restrictions on access to client data and strengthening surveillance systems to monitor unauthorized access, the company is upgrading compliance procedures throughout its operations including subcontractors. * * * Internet investor Softbank Corporation incurred a group net loss of 16.3 billion yen (US$155 million) in the third quarter of 2003 because of marketing costs, TCR-AP reported recently. This was the first time Softbank posted third-quarter results, and it did not provide a year-ago comparison. However, its net loss was considerably narrower than the second-quarter's loss of 42.60 billion yen. ========= K O R E A ========= KOREA EXCHANGE: Equity Valuation Losses Trigger KRW213B Net Loss ---------------------------------------------------------------- Korea Exchange Bank (KEB) posted an operating income of KRW879.2 billion and net loss of KRW213.8 billion in 2003 due to equity valuation loss related to its troubled affiliate Korea Exchange Bank Credit Service (KEBCS) and accumulation of loan loss provisions against non-performing loans (NPLs) of the bank as part of efforts to further enhance asset quality of the bank. In details, 2003 net performance in the negative territory of the bank was mainly attributable to equity valuation loss (KRW 322.0 billion), adversely influenced by the massive-scale loss provisions set aside by the troubled credit card affiliate to guard off further deterioration of the credit card issuer's assets. Another significant factor contributing to 2003 performance of KEB was accumulation of loan loss provisions against distressed assets of the bank in a conservative manner in a bid to break away from future burden arising from the NPL. From another perspective, in the absence of equity valuation loss arising from the on-going merger with KEBCS, KEB could have tallied approx. KRW 110 billion of net income in 2003. As a result of its steady profit-driven management, the bank has successfully secured a rock-solid income platform, which helped interest income (KRW 1,205.1 billion) and fee income (KRW 564.8 billion) grow by 20.9% and 21.5% in 2003 from a year earlier, respectively. A bank officer said, "Our bank has secured a solid financial structure that will enable the bank to maximize income going forward and, thus, go back on its track to garner net income this year since we incorporated KEBCS-related equity valuation loss and our loan loss provisions sufficiently in 2003." He added, "Our bank is expected to show a marked business performance improvement this year as has been witnessed in the current upward trend of interest income and fee income performance, buoyed by our sustainable income platform bank wide." KOOKMIN BANK: Neither Confirming Nor Denying Takeover Plans ----------------------------------------------------------- On February 25, 2004, the Korea Stock Exchange requested Kookmin Bank to confirm the rumor about its possible acquisition of Korea Investment & Securities or Daehan Investment & Securities by a consortium it reportedly leads along with a foreign securities company or an asset management company. In a disclosure to the U.S. Securities and Exchange Commission (SEC), Kookmin Bank announced that the issue is under review and no official progress or decision has been made yet. Kookmin Bank will disclose further information when it is available. =============== M A L A Y S I A =============== PILECON ENGINEERING: Default Status Remains Unchanged ----------------------------------------------------- The Board of Directors of Pilecon Engineering Berhad announced that there is no material development to the status of default payment to Lenders as announced previously on January 30, 2004. Following the rejection of the Proposed Scheme of Arrangement of the Company by the Securities Commission vide their letter dated 29 January 2004, the Company decided to appeal to the Securities Commission. The Company shall make the necessary announcements upon finalization of the terms of the appeal. TENCO BERHAD: Releases Default Status Update -------------------------------------------- The Board of Directors of Tenco Berhad announced that there is no material development to the status of default payment to lenders as announced previously on 30 January 2004. UCP RESOURCES: EGM Set for March 24 ----------------------------------- Public Merchant Bank Berhad, on behalf of the Board of Directors of UCP Resources Berhad, announced that the Court-convened Meeting (CCM) and Extraordinary General Meeting (EGM) of the Company will be held at East VIP Lounge, Kuala Lumpur Golf and Country Club, No 10, Jalan 1/70D, Off Jalan Bukit Kiara, 60000 Kuala Lumpur, on Wednesday, March 24, 2004. The Notices of CCM and EGM will be advertised in Utusan Malaysia, The Star and Sin Chew Daily on February 27, 2004. This announcement is dated 27 February 2004. UCP RESOURCES: Securities Commission OKs Restructuring Proposal --------------------------------------------------------------- The Securities Commission (SC) has approved the Proposed Corporate and Debt Restructuring Scheme vide its letter dated July 18, 2003 subject to certain conditions which were stated in Paragraph 4 of the SC's letter. Specifically, condition (iii) states that full provision has to be made on the following trade debts where: (a) The amounts are in dispute; (b) Legal proceedings have been initiated or undertaken; and (c) The amounts have been outstanding for more than six (6) months. On February 6, 2004, Public Merchant Bank Berhad (PMBB) had, on behalf of UCP and JCB, sought a waiver from the SC from having to comply with the condition imposed by the SC wherein full provisions has to be made for JMR's trade debts that have been outstanding for more than six (6) months (Waiver). In this regard, PMBB announced that the SC had, vide its letter dated 25 February 2004, approved PMBB's application for the Waiver, however, JMR is still required to provide for sums that are outstanding for more than six (6) months after the retention period as stated in the respective contracts or for those debts that are deemed not collectible. This announcement is dated 27 February 2004. UNITED CHEMICAL: AljeffriDean Conducts Investigative Audit ---------------------------------------------------------- Further to the announcement dated January 6, 2004 in respect of the approval by the Securities Commission (SC) on the proposed restructuring of United Chemical Industries Berhad (UCI), Alliance Merchant Bank Berhad (Alliance), on behalf of the Board of Directors of UCI, announced that the Company had, on February 24, 2004, appointed Messrs AljeffriDean as an independent firm of auditors to conduct investigation audits on UCI. The approval of the SC for the Proposed Restructuring of UCI is subject to, among other conditions, the requirement to appoint an independent firm of auditors (who is experienced in conducting investigative audits and is not the existing or previous auditors) within two (2) months from the date of the SC's approval letter, i.e. on 31 December 2003, so as to ascertain the reasons for the past losses of UCI. Based on the results of the investigative audits, UCI is required to report to the relevant authorities should there have been any transgression of any relevant laws, regulations, guidelines or the Memorandum and Article of Association of UCI relating to UCI's Board of Directors and/ or any other relevant party that resulted in the said losses. The investigative audits must be completed within six (6) months from the date of appointment of the independent firm of auditors and appropriate announcement must be made on the findings of the investigative audits. Four (4) copies of the investigative report must be forwarded to the SC after the completion of the audit. This announcement is dated 26 February 2004. ===================== P H I L I P P I N E S ===================== ABS-CBN BROADCASTING: Annual Stockholders Meeting April 29 ---------------------------------------------------------- ABS-CBN Broadcasting Corporation has fixed March 15, 2004 as the record date for determining the stockholders meeting to be held on April 29, 2004 at 8 a.m. at Studio 1, ABS-CBN Broadcasting Center, Quezon City. The notice, agenda as well as the information statement will be distributed to stockholders, according to a disclosure to the Philippine Stock Exchange. * * * The ING Financial Markets has downgraded ABS-CBN Broadcasting Corporation to a "hold" from "buy" as the number of viewers declined in the past months slowing the network's revenue momentum, TCR-AP reported recently. The brokerage last month lowered its 12-month target price for ABS-CBN to 25 pesos from 26.50 pesos. ING said the Company has debts of PHP2.1 billion maturing this year and PHP2 billion in 2005, and cash on hand of only PHP1.7 billion as of September 2003. NATIONAL POWER: Bidding out Pulangi Power Plant Repair Works ------------------------------------------------------------ The state-owned National Power Corporation (Napocor) will bid out the contract for the rehabilitation of the Pulangi hydropower plant in Bukidnon, reports the Philippine Star, citing Energy Secretary Vincent S. Perez. The rehab work intends to improve the dependable capacity of the power facility to its original capacity of 255 megawatt (MW) from the present capacity of only 60 MW. Napocor sources said the rehabilitation, which will involve dredging, would be specifically carried out in the Pulangi 4 power plant. ================= S I N G A P O R E ================= EXCELLENT HOLDINGS: Posts Winding up Order Notice ------------------------------------------------- Excellent Holdings Pte Ltd. issued a winding up order notice made on the 13th day of February 2004. Name and address of Liquidators: Mr. Ramasamy Subramanian Iyer Mr. Goh Thien Phong Mr. Kan Yut Keong Messrs PricewaterhouseCoopers Certified Public Accountants 8 Cross Street #17-00 PWC Building Singapore 048424. Messrs TAN JINHWEE, EUNICE & LIM CHOOENG Solicitors for the Petitioner. The Singapore Government Gazette announcement is dated February 20, 2004. HOKOK PTE: Files for Liquidation -------------------------------- Hokok Pte Ltd. issued a winding up order notice made on the 6th day of February 2004, reports the Singapore Government Egazette. Name and address of Liquidator: Official Receiver, Insolvency & Public Trustee's Office, The URA center(East Wing), 45 Maxwell Road, #05-11 & #06-11, Singapore 069118. ALLEN & GLEDHILL Solicitors for the Petitioner. The Singapore Government Gazette announcement is dated February 20, 2004. I.R.E. CORPORATION: Survival Hinges on Debt-equity Swap ------------------------------------------------------- In view of the continued slow down of the construction industry and the intense market competition, I.R.E. Corporation Ltd. expects to operate in a difficult environment. In a disclosure to the Singapore Stock exchange, the sustainability of profits and its ability to operate as a going concern depends on the shareholders and existing lenders to provide financial support to the Group. Measures undertaken include the following: (a) The Company has reduced the par value of each ordinary share in the share capital of the Company from $0.10 to $0.01 since November 2003. The capital reduction has cancelled a substantial part of the paid-up capital of the Company that was no longer represented by available assets and the reduction in par value of the ordinary share of the Company would reflect a more accurate and realistic financial position of the Company. (b) The Company is currently undertaking a debt and equity restructuring plan. Following an update through MASNET announcement made on 31 December 2003 on the progress of the Debt and Equity Restructuring Plan, the Board wishes to make the below updates: IRE's major shareholders namely Nippon Paint (Singapore) Pte Ltd and its related corporation, Nippon Paint (Hong Kong) Co. Ltd, Yenom Holdings Pte Ltd and Mr. Teo Cheng Kwee have agreed to convert their debts amounting to approximately $29.99 million into new ordinary shares at a conversion price of $0.035 for each ordinary share. IRE has also successfully negotiated with its trade and other creditors to have part of their total debts of approximately $11.94 million converted to new ordinary shares at a conversion price of $0.035 for each ordinary share. Subject to the fulfillment of certain conditions imposed by its major lenders, the Company has obtained in principle approval from its major lenders, Standard Chartered Bank Limited, United Overseas Bank Limited and International Factors Leasing (Singapore) Pte Ltd to convert part of their total debts amounting to approximately $37.71 million into new ordinary shares at a conversion price of $0.035 for each ordinary share. The terms of the conversion of the outstanding debts owed by the Group to them into ordinary shares of the Company have not been finalized yet. The above debts conversion, if successful, will help to improve the financial position and cash flow of the Group and the Company. The debt and equity-restructuring plan are still subject to inter alia, approval of the SGX-ST and the shareholders. With the completion of the debt and equity- restructuring plan, the Group will be able to meet contingent and other liabilities. Michael Tay Kwang How Company Secretary KAVATAR CORPORATION: Creditors Must Submit Claims by March 21 ------------------------------------------------------------- The creditors of Kavatar Corporation Pte. Limited (In Members' Voluntary Liquidation) are required on March 21 to send in their names and addresses and the particulars of their debts or claims and the names and addresses of their solicitors (if any) to the Liquidator of the said Company c/o 2 Mistri Road, #12-01 HMC Building, Singapore 079624, and if so required by notice in writing from the said Liquidator, are by their solicitors or personally to come in and prove the said debts or claims at such time and place as shall be specified in such notice or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. The Singapore Government Gazette announcement is dated February 20, 2004. TEH KWANG HWEE Liquidator. =============== T H A I L A N D =============== BANGKOK BANK: Selling 500 Properties Worth TBH3 Billion ------------------------------------------------------- Bangkok Bank will offer more than 500 properties for 3 billion baht at the NPA Grand Sale, to run from February 27 to February 29, 2004 at the Bangkok Convention center at Central Lat Phrao, Bangkok Post reports. Properties to be offered include townhouses, detached homes, commercial buildings, land and factories. Some 90% of the properties are located in Bangkok, with prices ranging from 200,000 to 50 million baht. The bank will also offer loans of up to 90% of the purchase price at a fixed interest rate of 1.99% for the first 18 months and one point under prime rates for the remainder of the term. BANGKOK RANCH: Meets 13 Interest Payments in December ----------------------------------------------------- Pursuant to the Bankruptcy Court's approval of the business reorganization plan of Bangkok Ranch Public Company Limited on August 17, 2000, the Company's plan administrator announced the progress of plan implementation since the previous report sent to the Stock Exchange of Thailand on December 17, 2003, as follows: THIRTEEN INTEREST PAYMENT PURSUANT TO THE RESTRUCTURED FACILITIES AGREEMENT TO RESCHEDULING CREDITORS The Company processed the thirteen-interest payments according to the conditions stipulated in the restructured facilities agreement to all rescheduling creditors on December 31, 2003 sixth principal repayment of secured debt. The Company processed the sixth principal repayment to secured creditors according to the conditions stipulated in the restructured facilities agreement to all rescheduling creditors on December 31, 2003, the second principal repayment of unsecured debt. The Company processed the second principal repayment to unsecured Creditor according to the conditions stipulated in the restructured facilities agreement to all Rescheduling Creditors on December 31, 2003. Changing term and condition of warrants On December 26, 2003, the warrant holder agree to change conditions of warrant by extension maturity date from April 30, 2004 to December 30, 2005 and exercisable on quarterly establishing three new subsidiaries. Sincerely yours, (Mr. Joseph Suchaovanich) (Ms. Jaithip Kanjanapoo) Bangkok Ranch Planner Limited As Plan Administrator of Bangkok Ranch Public Company Limited NATURAL PARK: Invites Foreigners to Take Part in Local Projects --------------------------------------------------------------- Natural Park PCL is scouting for opportunities to invest in rental properties in New York, London and Tokyo, while inviting foreign companies to join the developer in domestic projects, the Bangkok Post reported on Wednesday. Company Chief Executive Officer Sermsin Samalapa was recently hunting for opportunities in the three cities. "There are many provocative investment properties in New York and London. However, we're quite keen on China, as the country has many non- performing assets to take over for redevelopment," he said. Investments abroad could be in the form of joint ventures, while the company desires to attract foreign capital and know-how for construction and property management projects in the local market. THAI NAM: Reappoints Audit Committee Members -------------------------------------------- The Board of Directors of Thai Nam Plastic Public Company Limited at a meeting held on February 25, 2004 had passed to re- appoint the following members of audit committee: (1) Mr. Natee Sangudomlerd Chairman of the Audit Committee (2) Mr. Padoong Techasarintr Member of the Audit Committee (3) Mr. Mana Sethaputra Member of the Audit Committee (4) Mr. Chairoj Kongsiripanich Secretary of the Audit Committee Whereas, their terms and the scope of duties and responsibilities remained unchanged. Please be informed accordingly. Sincerely Yours, Mrs. Siriphorn Mangkornkarn Deputy Managing TPI POLENE: TRIS Withdraws Ratings ---------------------------------- TRIS Rating Co., Ltd. has cancelled the conditional ratings of TPI Polene PLC (TPIPL), as mentioned in TRIS Rating's announcement dated October 10, 2003 that the conditional ratings will be applied only until the last day of February 2004. Therefore, TRIS Rating will no longer monitor TPIPL's ratings, and the ratings assigned previously in condition 1 at "BBB-" and in condition 2 at "BBB" cannot be used as references. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Frederick, Maryland USA. Lyndsey Resnick, Ma. Cristina Pernites-Lao, Editors. Copyright 2004. All rights reserved. ISSN: 1520-9482. 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